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Firm innovation and global value chain participation

Research output: Contribution to journalArticlepeer-review

Ketan Reddy, Radeef Chundakkadan, Subash Sasidharan

Original languageEnglish
Pages (from-to)1995-2015
Number of pages21
Issue number4

Bibliographical note

Funding Information: We thank Malathy D,?Alex Eapen, and Raja Sethu Durai S for their thoughtful advice. We also thank all the participants of the XIV Annual International conference of the Forum for Global Knowledge Sharing and the 56th Annual Conference of the Indian Econometric Society for their valuable feedback. We also thank the editor and an anonymous referee for their insightful comments and suggestions. Publisher Copyright: © 2020, Springer Science+Business Media, LLC, part of Springer Nature.

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The objective of this paper is to examine the relationship between innovation and firms’ participation in global value chains (GVCs). To achieve this objective, we use rich firm-level data from the World Bank Enterprise Survey (WBES), spanning the period of 2006–2017, belonging to 90 countries. Accounting for endogeneity arising from reverse causality, our study finds firm innovation to be a driver of firm GVC participation across countries. These findings are robust to alternative measures of innovation and various sub-sample analysis.

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